By: Isaac Lee, Jennifer Weitz, Esq., and Ty Hyderally, Esq.

The New Jersey State Legislature has passed legislation prohibiting an employer’s use of a tracking device in a vehicle operated by an employee, without giving notice to the employee. As of April 18, 2022, employers are required to disclose to employees when “geo-tracking” their locations in the course of their work.[1] Assembly Bill No. 3950 follows a trend of federal authorities and state legislators strengthening privacy laws.[2]

The new law requires that employers provide written notice—but not consent—to employees when “[using] a tracking device in the vehicle of an employee.” The law requires this written notice even if the company owns or leases the vehicle being tracked.[3] Interestingly, “tracking device” is defined as “an electronic or mechanical device which is designed or intended to be used for the sole purpose of tracking the movement of a vehicle, person or device” [emphasis added].[4] This means that many common forms of geo-tracking, such as an app on a company-issued phone, are not subject to the law.

The law does not allow for a private right of action. Instead, the New Jersey Commissioner of Labor and Workforce Development enforces the law. Failure to provide notice can result in a $1,000 fine for the first violation and $2,500 fine for subsequent violations. The law, however, does not apply to public employers and public transportation systems.

While the law is designed to protect employee privacy in the workplace, the narrow application of the law will likely not affect many employees, as compared to more broad applications in other states. For example, Illinois requires consent from vehicle owners in order for employers to track their location. This is much more powerful than the New Jersey legislation that does not require employee consent and does not provide a private cause of action.  Thus, even if an employee takes issue with the employer tracking him/her, there is no right to object to the employer’s practice, provided the employer gave notice.

Nevertheless, employers operating in New Jersey and other similar states should take note of this new requirement to notify their employees of tracking devices, or face the possibilities of statutory penalties.  Employees should feel a little more comfortable in New Jersey with their privacy, as the law applies whether an employee is driving a personal vehicle or a company car. A. B. 3950 further strengthens employees’ privacy and autonomy and follows the rising trend of states increasing privacy laws. New Jersey, we are getting there, slowly but surely!

En nuestra firma hablamos español. This blog is for informational purposes only.  It does not constitute legal advice, and may not reasonably be relied upon as such.  If you face a legal issue, you should consult a qualified attorney for independent legal advice with regard to your particular set of facts.  This blog may constitute attorney advertising.  This blog is not intended to communicate with anyone in a state or other jurisdiction where such a blog may fail to comply with all laws and ethical rules of that state of jurisdiction.

[1] 2020 New Jersey Assembly Bill No. 3950, New Jersey Two Hundred Nineteenth Legislature – Second Annual Session.

[2]For developments in various state privacy laws this year, see Robert Botkin & Sara F. Hutchins, The Privacy Landscape Continues to Grow, JDSupra, May 23 2022, https://www.jdsupra.com/legalnews/the-privacy-landscape-continues-to-grow-4219744/.

[3] Cory Rand, New Jersey Employers Are Now Required to Provide Written Notice Before Using Tracking Devices in Employee-Operated Vehicles, National Law Review, Jun. 14 2022, https://www.natlawreview.com/article/new-jersey-employers-are-now-required-to-provide-written-notice-using-tracking.

[4] A. B. 3950, supra note 1 at 1(d).